Are You Leaving Money On the Table? – Introduction
June 28, 2016
“Gersh, what’s the number one thing I can do to make my China sourcing program better?” Many of the importers I interact with ask me the same question, and it does not seem to matter how much time they have been in China or what industry they are involved in.
So far this year I have had the opportunity and privilege to interact with over 150 importers with significant China sourcing programs; ranging from veterans who have been in the game for 20+ years all the way down to China novices who are ready to embark on the same journey. Each of these importers want to improve what they already have, whether they are large corporations with multi-million dollar programs and well managed sourcing infrastructures or small-to-medium enterprises who use various clever approaches to manage on a limited budget.
The same question surfaces all the time and my answer is always the same: There is NO silver bullet!
There isn’t a single trick that will yield a magical transformation. There is no magic wand or secret formula to take one’s sourcing operation to the next level. It is instead, a painstaking process that starts with vision, a desire for a high level of excellence, (What we call the Ultimate China Sourcing Solution) and developing an understanding of what works and what does not. And then figuring out what should be done about it. Improvement is about facing reality and having the willpower and determination to make a series of adjustments, big and small.
What I found interesting is that all importers go to China because it is both the cheapest and most reliable source for their product. And yet nearly all find China challenging and end up spending more money than necessary to support their China sourcing program.
Knowing about this pent-up desire for a higher level of excellence prompted me to write a 3 part blog series called “Are you leaving money on the table?” In this series I will share with you my views about the challenges that importers are confronted with in tackling the supply chain, and how, in different circumstances, there is a tendency to “leave money on the table” as a result of under-management of China sourcing programs.
The 3 Part series will consist of the following:
- Trade Companies and what they do for your China supply chain
- Sourcing Agent, how they differ, and how they can help
- Opening You Own China sourcing office and how this benefits you
- Conclusion: Are you leaving money on the table?
What are your views on China sourcing excellence? Do you think you are leaving money on the table?
By Guerschom Francois